Cebu riders win case vs. food delivery firm

The firm is mandated to pay back P7.43 million to the complainants, which represents the reduced delivery fees.

The National Union of Food Delivery Riders (Riders Sentro) holds a press conference on Friday, Oct. 11, to tackle their winning case against a billionaire food delivery company. | CDN Photo/ Emmariel Ares

CEBU CITY, Philippines – Members of the Union of Food Delivery Riders (RIDERS-SENTRO) are celebrating their achievement against a multinational food delivery service company.

During a press conference, the union announced the ruling by the National Labor Relations Commission (NLRC) Regional Arbitration-7.

A key point of the ruling establishes that the company and its riders indeed have an employer-employee relationship, which contradicts the company’s classification of riders as independent contractors.

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It also recognizes that the company exercises control over the work of riders, who are integral parts of the business.

The NLRC’s ruling asserts the Labor Arbiter’s decision that the company has violated the “right to non-diminution of benefits” of the 18 complainants who filed a case.

The complaint was made after the company reduced the base fee from P55 to P25 without considering the riders’ opinions.

Therefore, the company is mandated to reinstate the compensation scheme used from 2018 to 2020, which is a P55 base fee plus P20/P10/P5 batching incentive, as the basis for computing the complainants’ fees.

In addition, the company must pay P7,432,934.25, representing the reduction in delivery fees, to the complainants.

The delivery riders are extremely overjoyed with this development after one year of fighting for justice.

As delivery riders, they shared that the reduction has heavily affected their livelihoods, as they barely earn anything for themselves on top of the costs of maintaining their vehicles, gas, and more.

“Karon dako kaayo akong pasalamat ug malipayon mi nga nakab-ot na gud namo ang hustisya nga among gitagamtam karon,” said Abraham Monticalbo Jr., president of the Cebu Union of Food Delivery Riders.

Abraham and his members were joined by their respective lawyers, who highlighted that the decision acknowledges the role of delivery riders, particularly during the pandemic.

“This ruling by the Labor Arbiters, this shows that our delivery riders, they are heroes of pandemic. We rely on them so much. They’re not true freelancers. They are not real independent contractors. But they are in fact employees of these super app companies,” said Lawyer Tepi Claros.

Claros added that the laborers recognized that the complainants are entitled to their original P55 base pay, which was changed without informing the riders.

She also said that this development is a step towards achieving the goal of giving the riders tenure in their positions and for the development of their work as a formal sector.

Lawyer Jigo Dacau, for his part, said that while the company can still appeal the ruling, they will continue their fight for the benefit of not just the complainants but all delivery riders.

However, the union appealed to the company to “do the right thing – respect the decision, correct the injustice against the riders, and not appeal the decision anymore.”

RIDERS-SENTRO also urged the company to “sit down with the union and initiate talks for a collective bargaining agreement” between the company and the riders.

Following their victory with the NLRC, the group also called on more delivery riders to come forward and join their cause in fighting for their labor rights.

The union emphasized that their end goal is not to have the company shut down but to ensure that everyone receives the right compensation for their hard work. /clorenciana